LEAN MANUFACTURING:

EXTRACTS FROM THE MANUFACTURING

TRANSFORMATION BLOG
Sponsored by
 This eBook was compiled from
a series of articles written for the
Manufacturing Transformation
Blog on Lean manufacturing.

Just as the world of Lean has a

goal of continuous improvement –
so too is the learning of how to
continue on your Lean journey.
We hope you find this collection
of articles interesting, thought
provoking and educational.

2 SPONSORED BY DASSAULT SYSTEMES

Contents
It’s Time for a Lean Manufacturing Makeover 4

The Biggest Obstacles to Making Manufacturing Leaner 6

Lean Success, Part 1: If It’s not Complete, It’s not Lean Enough 8

Lean Success, Part 2: It’s not Lean if You Can’t Measure It 10

Lean Success, Part 3: You Won’t Stay Lean if You Can’t Enforce It 12

Expanding the Relevance of Lean Manufacturing to Data 14

5 Ways to Advance Lean Manufacturing with Real-time Intelligence 16

Using Real-time Intelligence to Enhance Lean Manufacturing 18

The Increasing Role of IT in Lean Manufacturing 20

Taking Lean to the Supply Chain 22

Taking a Lean Approach to Quality 24

Three Ways to Improve Quality with Lean Manufacturing 26

A Lean Approach to Management 28

Lean Management Part 2: Continuous Improvement 30

Golf Lessons from Lean, Six Sigma and TOC 32

Lean Manufacturing and the World of Warcraft 34

The Authors 36

SPONSORED BY DASSAULT SYSTEMES 3

 IT’S TIME FOR A LEAN MANUFACTURING
MAKEOVER - BY FRED THOMAS

Manufacturing has changed a lot since the 1950s when Toyota Motor Company of Japan
introduced the concept of implementing an integrated process to more efficiently manage
equipment, materials and its workforce throughout the production cycle. Over time, this
technique allowed Toyota to deliver more reliable, higher-quality products faster — and at a
lower cost — than other mass produced automakers. By the time we entered the 1980s and
1990s, the practice of eliminating waste to create customer value with fewer resources had
caught on in the U.S. and other countries.

Fast-forward to 2014: While the concept and best practices of the Lean production system
remain intact, the implementation on the plant floor faces a major facelift. That’s simply
because the entire manufacturing dynamic has transformed to include new technology,
new global competition, new government regulations, and a hyper-connected world of
intelligent devices and social networks that enable seamless communication between
companies and their customers.

Times have changed. And, in order to remain an agile manufacturer, Lean methodologies
must adapt and change too. Otherwise, organizations will remain stuck in the 1950s while
the competition soars into 21st century manufacturing.

Before rushing into a new Lean manufacturing model, however, it’s a worthwhile exercise to
take a step back to identify what’s different and the direct impact it has on Lean processes.

4 SPONSORED BY DASSAULT SYSTEMES

1. Technology is a good thing
Early pioneers of Lean systems pursued strategies of removing IT from production
processes, viewing this technology as an additional step which could be “leaned” out of
processes to remove waste. This philosophy was probably reasonable in the 1970s when
technology was in its early, nascent stages; today, however, is a completely different
situation with a level of complexity that necessitates reliance on IT systems to remove the
waste of manual processes.
2. Leveraging the right technology
Manufacturing Execution Systems (MES), Manufacturing Operations Management (MOM)
and Enterprise (MI) have become instrumental in the quest to add efficiency into scheduling
production, tracking inventory, synchronizing material flows and increasing visibility across
the supply chain. The Just-in-Time mentality to deliver product is now being transplanted
by a need to be more predictive and insightful. Manufactures need to know what customers
want—and for that, they are turning to Big Data and predictive analytics. While Big Data
deals with different data sets that don’t always seem relevant to the plant floor, everything
in the from the supply chain, plant floor, enterprise, and beyond must be interconnected in
today’s day and age. Therefore, it’s time to analyze the impact of every data stream on the
production of goods.
3. Global competition
Cost pressure and the need to locate closer to end users has only accelerated the push to go
global; as a result, the need to understand foreign cultures and designing new products and
services for them has never been more acute. Lean must now be agile to support continuous
innovation while comprehending the complexity associated with an ever-changing, fast-
paced global world. All of these elements require a fresh look at Lean manufacturing
practices.
4. Government regulations
New regulations emerge in specific industries all of the time, forcing companies to
reexamine processes. The Food Safety Act, for example, is a sweeping reform of food
safety laws. That means, back to the drawing board for many companies—especially those
companies that are still paper-based. Time to digitize processes and reevaluate how quality
practices are implemented, tracked, and audited.
5. Hyper-connected communication
The new customer service interface is social media—especially from a mobile device. This
means someone can post a comment or photo about your product anytime, anywhere.
And, they expect an immediate response. Manufacturers must somehow capture the
information—down to every last tweet—and sift through it to identify trends that can be
pushed back into the research, development, and production cycles.
Lean manufacturing is still a very relevant business practice. But, like everything else
in manufacturing, the process must progress to keep pace with the organizational
shifts happening all around it. Perhaps that means new conversations will have to take
place between CIOs and manufacturing executives. Or, that traditionally accepted best
manufacturing practices have to get better. Either way, Lean is not going away, it’s just in a
new phase of innovation and transformation.
What will your Lean strategy look like in the future?
This blog post was published on February 11, 2014.
You can read the original post here:
http://www.apriso.com/blog/2014/02/lean-manufacturing-makeover/
SPONSORED BY DASSAULT SYSTEMES 5
 THE BIGGEST OBSTACLES TO MAKING
MANUFACTURING LEANER
- BY TOM BONINE

By reducing waste from operations, implementing Lean manufacturing steps into your
business can improve your profitability. Unfortunately, there are issues that present
obstacles that must be addressed to achieve this goal.

Time
Tightening any manufacturing process takes time; it is not going to happen overnight. You
must make a commitment to leaning your process and you must get everyone on board,
working together. The actual amount of time required greatly depends on the number
of problem areas a business is facing. The length of time can be reduced with the correct
resources, the right systems, designated targets, adequate training and cooperation across
all departments.

Resources
Without the right materials or resources, a manufacturer cannot make a product, and Lean
manufacturing cannot be achieved. Resources include Six Sigma or Kaizen training, software
and IT systems, and a budget to identify and embrace process improvement.

With regards to the software systems, there are many to choose from, each playing a
different role. Enterprise Resource Planning (ERP) is management software ideally suited for
keeping a record of production as it relates to financial tracking, with individual applications
that can be integrated to meet an industry’s needs. Manufacturing facilities can benefit
greatly from Manufacturing Resource Planning (MRP) and Supply Chain Management
(SCM) systems. The variety of solutions is vast and ERP is no longer just for larger
enterprises.

Manufacturing Execution Systems (MES) are designed to collect information from the
factory to gain insights into operational performance and quality management. This
program can also be integrated into an ERP solution.

6 SPONSORED BY DASSAULT SYSTEMES

Correct Targets
Too often, time is lost by focusing on the wrong targets. Companies must be able to look at
the entire manufacturing process – from initial order to product delivery – to identify each
individual area that is impeding progress. If communication between departments presents
an issue, the problem must be corrected. If communication is not an obstacle, the area can
be marked as a function to watch.
Many manufacturers will find key areas in inventory, engineering and quality. Once a
section of production has been identified, the cause of the failure needs to be analyzed. If
duplicate or wrong materials are being purchased, the inventory control system must be
updated. These issues require an in-depth evaluation. An inventory issue could be coming
from outdated bills of materials or from old engineering designs being used for parts orders.
Rework or production that does not pass quality control is an expensive (and avoidable) cost
of manufacturing. The company must determine where the quality is failing, which involves
looking at each step of their production process. The problem may not be in the materials
used or the skill of the production workers, the problem could be coming from machinery
that is out of calibration.
Resistance
A lack of knowledge of what Lean manufacturing means and how the objective is achieved
is a large barrier to progress. Lean manufacturing is the elimination of waste in all
production areas including production, material flows, quality, delivery and costs. From Just-
in-Time systems to reduce inventory to the efficient use of energy, all aspects of production
can be improved. In fact, so too can the management as well.
Managers often present an obstacle in improving the production flow. This may be
unconscious or conscious resistance. Many individuals in middle management positions do
not want to release the control over operations and may even fear losing their positions.
Production workers can present several obstacles. A large portion of Lean manufacturing
is more production in less time at the same or better quality. Employees can be resistant
to change and feel that Lean manufacturing will require them to work harder. This issue
must be addressed by showing workers that the benefit is in streamlined production that is
designed to make the work easier.
Without adequate training, employees cannot be expected to manufacture more products
while retaining the desired quality level. An investment in training goes a long way toward
increasing production and reducing the workload to decrease the resistance.
Follow Through
Once your company begins to see the results of a Lean manufacturing program, you must
continuously monitor the effectiveness. Backsliding into old habits will occur if no one is
paying attention. Lean manufacturing is not a one-and-done function. Kaizen is directed
toward waste elimination and continuous improvement — with the key it must
be continuous.
This blog post was published on August 5, 2014.
You can read the original post here:
http://www.apriso.com/blog/2014/08/the-biggest-obstacles-to-making-manufacturing-leaner/
SPONSORED BY DASSAULT SYSTEMES 7
 LEAN SUCCESS, PART 1:
IF IT’S NOT COMPLETE, IT’S NOT
LEAN ENOUGH - BY JORDAN BERKLEY
Is the journey to Lean manufacturing really worth the cost of admission? That’s the
provocative question asked by the business process consultants, AlixPartners, in a new
survey of manufacturing executives.

Considering how much time, organizational effort and cost manufacturers have invested
in Lean, the results of the survey surprised me. The issue is not whether Lean has failed
– more than 90% of the executives surveyed said their efforts were somewhat or very
effective. The question is whether Lean has delivered on expectations. Almost 60% of the
executives said they were realizing “less than half of their expected savings.” What’s more,
among those enterprises that had projected 5% savings, less than a third had managed to
reach that goal.

Why is there such a gap between expectations and reality?

One answer may be “inaccurate opportunity analysis,” in consultant jargon. But I think
the survey points to something deeper. The fact is that some Lean projects are more
successful than others. Why is this? What makes for a successful Lean initiative? Having
worked with many manufacturing enterprises, I believe Lean delivers on value when three
criteria are met:

1. When the approach is complete

2. When results are measurable
3. When continuous process improvement is enforceable

8 SPONSORED BY DASSAULT SYSTEMES

I’m going to drill down into these three points over my next few blog posts. In this way, a global platform becomes a powerful Lean multiplier, capable of leveraging
every savings across 10, 20 or more plants worldwide. I’d be willing to bet that 100% of
Let’s start with the first requirement: Lean implementations must be complete. What I mean executives would consider that a worthwhile investment!
is that manufacturers must have organizational and technological platforms that span the
full spectrum of operations, across all locations, or else inefficiencies will always crop up. For
example, say you’re implementing a pull strategy with synchronized production, warehouse This blog post was published on December 13, 2011.
and suppliers. For that to work right, you need an operations platform with a footprint at You can read the original post here:
http://www.apriso.com/blog/2011/12/lean-success-part-1-if-its-not-complete-its-not-lean-enough/
least that wide, or else how will you synchronize all the moving parts? In fact, it should
cover other dimensions impacting production, such as quality, compliance and maintenance.
Any gap in the system inevitably results in inefficiencies.

But it’s even more complicated than that because in the real world things go wrong. Your
planning systems can schedule a perfectly efficient day at the factory, but then there’s an
equipment breakdown, a missed delivery, or a last-minute change in a customer order. In
the real world of manufacturing, that kind of occurrence is the rule more than the exception.
So, a Lean manufacturing system has to be complete, in the sense that it can handle
unpredictability with optimum efficiency, on a daily basis.

There’s yet another dimension to be considered in a “complete” approach, and that’s the
global aspect. This may be the most important dimension of all. Lean initiatives that are
implemented on a plant-by-plant basis will never be as effective as those implemented on
a common global platform of processes and technology. When all plants are using the same
planning and execution system, best practices can be more readily discovered and shared
across the enterprise.

SPONSORED BY DASSAULT SYSTEMES 9

 LEAN SUCCESS, PART 2:
IT’S NOT LEAN IF YOU CAN’T MEASURE IT
- BY JORDAN BERKLEY

I came across a startling statistic recently, from a survey of manufacturing executives. Fully
14% said they did not know how much their Lean initiatives had saved. Think about that
for a moment. Manufacturers have invested significant amounts of time, resources and cash
in Lean initiatives, yet one in seven can’t say how much they’ve saved – or even if they’ve
saved. (The study was by AlixPartners.)

Lean success depends on three factors:

1. When the approach is complete

2. When the results are measurable
3. When continuous process improvement is enforceable

In this post, I will discuss the second factor: Lean must be measurable.

So how is it possible that so many executives are in the dark about the performance of
their Lean projects? After all, you can’t improve what you can’t measure. Measuring the
right things, the Key Performance Indicators that drive behavior is essential to successful
continuous improvement initiatives. As important, and too often overlooked, these metrics
need to be defined, measured and reported the same way so they mean the same thing,
at each plant in the enterprise. This concept is paramount to achieving long-lasting Lean
success.

10 SPONSORED BY DASSAULT SYSTEMES

I can think of two reasons why visibility is hard to achieve. One is the difficulty in deciding
what needs to be measured. In Microsoft’s white paper “The Value of Manufacturing
Visibility,” the authors state that “most manufacturers are challenged in knowing which
few numbers really need to be captured.” The paper suggests several key metrics to
track, including capacity and availability, labor efficiency per unit of production, quality,
inventory turns and value-add time. MESA’s Metrics that Matter Guidebook is another
valuable resource for determining the right KPIs for your organization. And, of course, your
organization has its own set of metrics, though often I’ve seen organizations with too many
KPIs. Initial effort devoted to defining what the right metrics are as well as the right number
will be rewarded down the line.
The bottom line is that manufacturers can certainly meet – or even exceed – their Lean
goals. A critical step is that you must know what should be measured and you must have a
system in place to accurately, consistently measure these activities in order to ascertain if
performance improvement has really occurred. Consistent visibility and measurement of key
activities can drive performance or anticipate issues, across all facilities and operations.
This blog post was published on January 18, 2012.
You can read the original post here:
http://www.apriso.com/blog/2012/01/lean-success-part-2-its-not-lean-if-you-can’t-measure-it/

Let’s assume you have clearly defined what will be measured. A big question still remains
… how will you measure it? Even within a single plant, producing metrics correctly and
in a timely fashion can be a challenge, especially if some processes are paper-based. For
example, a production line might have automated execution, but downstream assembly is
still using paper. Or, you might have several automated data collection systems making data
integration difficult and costly.

Having identified what and how to measure, the next step is to actually perform the
measurement, which can sometimes take too long, reducing their “actionable” value.
The challenges grow exponentially when you want to measure the flow of materials and
production processes across multiple plants.

While these challenges are great, they are far from insurmountable. World class companies
that have been most successful have built common processes and metrics on a common
global platform, which has greatly simplified data aggregation, visibility and accuracy. I have
seen a medical device company reduce inventories by 25-35% across 16 plants. A consumer
goods manufacturer cut WIP inventory by 50% and reduced cycle time by 50%.

SPONSORED BY DASSAULT SYSTEMES 11

 LEAN SUCCESS, PART 3:
YOU WON’T STAY LEAN IF YOU CAN’T
ENFORCE IT - BY JORDAN BERKLEY
I don’t know how many times I’ve heard this story. A manufacturer invests hundreds of
thousands of dollars in Lean initiatives, hires consultants, works for 6 months to make vital
and profitable process improvements, and then … the project winds down, the consultants
leave, and people slip back into their old habits. Most if not all of the benefits are lost,
despite the hard work and investment, because the process improvements couldn’t be
embedded and sustained with how the work actually gets done.

This brings me to my third key to Lean success: Enforcement. (My previous blogs covered
the first two keys, Completeness and Measurability.)

How can you ensure that your Lean procedures and continuous process improvement
initiatives will be followed? While training programs and corporate manuals may provide
a sense of accomplishment, they can’t actually enforce the consistent practice of Lean
behaviors necessary for success. Instead, Lean succeeds when the enforcement is embedded
directly into the processes, through such mechanisms as automated directed manufacturing,
reviews and signoffs. Workers can then be guided through new procedures, reinforcing new
behaviors until they become habits.

12 SPONSORED BY DASSAULT SYSTEMES

Here is the challenge: embedding enforcement is not easy if you’re manufacturing IT
systems can’t support frequent process changes. This is what we typically see with older
manufacturing execution systems, which typically require a software change and / or a new
release of the software to incorporate change. Often changes must be made in multiple
“point” or departmental systems for processes that cross functional boundaries – for
example, a quality inspection embedded in a manufacturing process, resulting in further
challenges and delays. To make matters worse, if you have multiple plants running different
manufacturing or paper-based systems, as most enterprises do, then your initial Lean
process improvements may need to be done manually, as a way to test for improved results.
Even if the results are stunning, rolling these improvements out across your enterprise is
nearly impossible. If you cannot quickly share the fruits of your Kaizen events across all
sites, you’re losing a huge part of the value of your Lean initiatives.
On the other hand, if you have a global manufacturing platform that enables you to model,
execute and share your business processes, then you can easily standardize best practices
spanning departments and locations. This puts you in a whole different ballpark.
If you can make process changes quickly, with minimal burden on your IT department, then
you can create a virtuous circle with the business users. When process improvements are
rapidly adopted into the manufacturing systems, plant workers get more engaged and are
more likely to bring forth more improvements. The next step is to drive those improvements
out to every plant and worker in a way that can be monitored and enforced seamlessly.
I would propose that this is the real key to Lean success. In the end, a great idea
doesn’t count for much if the improvements can’t actually be executed and sustained.
Microsoft makes this point in their white paper, The Importance of Manufacturing
Visibility: “Remember, though, that manufacturing visibility is merely a tool to achieve
business objectives. Although visibility can gauge the progress of operations …
the real work still occurs on the plant floor – and in the minds of employees dedicated to
improving that work.”
There’s no better way to be sure that employees follow procedures – and ensure the
success of your Lean investment – than by embedding automated enforcement into your
operations throughout the enterprise.
This blog post was published on January April 5, 2012.
You can read the original post here:
http://www.apriso.com/blog/2012/04/lean-success-part-3-you-wont-stay-lean-if-you-cant-enforce-it
SPONSORED BY DASSAULT SYSTEMES 13
 EXPANDING THE RELEVANCE OF
LEAN MANUFACTURING TO DATA
- BY SCOTT JOHNSON

Lean manufacturing principles yield proven results in operations management with direct
benefits for customers. The implementation of Lean processes on the manufacturing
floor is hardly new, yet it is still expanding at manufacturing companies to drive improved
performance in quality, cost, and product delivery to customers. As an example of what can
be accomplished at a major manufacturing company, Lean improvements made on our large
format printing operations have reduced production cycle times by 15% and significantly
decreased costs across the product set.

Across the industry, Supply Chain teams are shaping change by driving Lean principles
through our data management and purchasing systems. Similar to the impact of reducing
physical steps in the manufacturing process, removal of unnecessary data transfers,
entry, and validation yields important benefits both internally and externally. Fewer data
management points significantly decreases the opportunities for errors (and their associated
costs) as well as reducing the processing steps that need monitoring. The greater the
complexity of the businesses supported, the greater the need for Lean business processes.

Many contract manufacturing companies, such as The Coghlin Companies, support the
complex manufacturing requirements of a diverse and global customer base. The profile of
work on any given week might include manufacturing large capital equipment, or precise
requirements to produce a high mix of printed circuit board assemblies. The management
of the materials in support of these profiles include planning, purchasing and handling of
approximately 60,000 unique part numbers. This type of volume might require about 500
different suppliers, shipping product into facilities via 7,000 purchase orders (PO) requiring
approximately 50,000 systematic transactions (PO placement, confirmation, receipt,
stocking, kitting, etc.) before a finished good is shipped. Mistakes or delays in any of these
transactions for any of these parts could delay shipments and increase costs.

14 SPONSORED BY DASSAULT SYSTEMES

Fewer steps in the manufacturing process can also make it easier to identify areas for
improvement, or quickly pinpoint the culprit if a step should go wrong. A Lean data
management system can also streamline your business analytics. For example, the points
become more meaningful when examining Return on Investment or evaluating the
effectiveness of specific steps in the manufacturing process.
The implementation of Lean theory to optimize the processing requirements is a critical
part of continuous improvement. An organization’s Supply Chain team, working closely
with its supply base, should be on a mission to focus requirements on reducing steps and
thus margin of error.
Some of the ways I have observed this type of continuous process improvement include:
Lean manufacturing is hardly a management improvement “fad.” It is a never-ending
journey that holds the keys to achieving current and future performance improvement
on a go-forward basis. On-going initiatives to develop Lean data practices continue to
contribute to the achievement of manufacturing goals for improved quality, delivery and
cost performance. The focus on Lean data practices in our supply chain is just one example
of how Lean initiatives still benefit companies and clients in profound was – now and in
the future.
This blog post was published on August 20, 2013.
You can read the original post here:
http://www.apriso.com/blog/2013/08/the-continued-relevance-of-lean-manufacturing-2/

• Automating demand signal transfers from our firm into the supply base
• Removing manual data entry at both the firm and the supplier
• Matching the processing steps to the physical flow and practice (e.g., Kanban parts
don’t flow as Manufacturing Requirements Planning [MRP] planned parts)
• Automating routine transactions, and
• Implementing monitoring metrics to flag exceptions and track performance.

SPONSORED BY DASSAULT SYSTEMES 15

 5 WAYS TO ADVANCE LEAN
MANUFACTURING WITH REAL-TIME
INTELLIGENCE - BY JAMES MOK
The necessary technology now exists, and is increasingly being used by manufacturers and
their suppliers, to apply greater automation through the use of real-time information as part
of a Lean manufacturing strategy. Interestingly, the full potential of the “The Toyota-Style
Information System,” as Taiichi Ohno envisioned it, is finally being realized today.

Here are five specific ways this new-found real-time capability can be used to take Lean
manufacturing to a new level:

1. Leverage second order information

Dynamic data, such as the up-to-the-minute or up-to-the-second standard deviation, micro-
trends and variability can now be used to trigger better actions and control processes (such
as dynamic buffers, dynamic Kanban flow, real-time TOC). These data can of course be used
to support Six-sigma improvement efforts and reduce DMIAC cycle time for projects, as well
as to improve the accuracy of master data in planning systems (standard lead time, standard
cost, etc.).

2. Extend in-process visibility/intelligence for enterprise operations

decision support
This is different from typical batch-based business intelligence or after-the-fact analysis.
Real-time in-process visibility enables prompt human decision-making, in effect putting
executives in direct control of the manufacturing “steering wheel”. While executives do not
need to know all the real-time details in operation, this capability is especially important
when dealing with a critical event in the supply chain, such as during a natural disaster or an
unplanned failure of a bottleneck machine.

16 SPONSORED BY DASSAULT SYSTEMES

3. Enable pull process to supply chain partners and customers
Synchronization of suppliers and sales is key to Lean initiatives, even when most Lean
improvement efforts are focused within the four walls of a production facility. Only
by coordinating in real-time with outside upstream and downstream partners can
manufacturers approach the full potential of Lean practices.
4. Sustain Kaizen
Kaizen drives many small steps of change in the Lean journey. The effect of the small
changes in shop floor layout, work sequence, equipment, methods, people and material
can all now be captured and made available in real-time. This makes possible rapid
measurement of Kaizen results and the bench-marking of operational KPIs across multiple
facilities to reinforce common goals.
5. Increase process and supply network flexibility
Real-time data, if coupled with the ability to act, opens up the possibility for new levels in
process and supply network flexibility. Companies now have the information they need to
make decisions about ramping up suppliers, switching processes and reconfiguring supply
networks to meet changing conditions.
Harnessing real-time information in these ways is not just possible, it’s becoming more
and more practical and cost-effective. In some industries, it’s becoming a financial and
competitive imperative. More than a quarter of a centtury has passed since Taiichi Ohno's
seminal book was published, and we finally have the technologies to unleash the full
potential of Lean methodology. This accomplishment was beyond the reach of its inventor,
but it’s now within ours.
Are you using real-time access to manufacturing intelligence to support your Lean
manufacturing across the enterprise? If so, I would be very interested to hear your stories.
If not, I would be equally interested in have a discussion to explain what is now truly
possible!
This blog post was published on February 28, 2013.
You can read the original post here:
http://www.apriso.com/blog/2013/02/5-ways-to-advance-lean-manufacturing-with-real-time-
intelligence/
SPONSORED BY DASSAULT SYSTEMES 17
 USING REAL-TIME INTELLIGENCE TO
ENHANCE LEAN MANUFACTURING
- BY JAMES MOK

When Taiichi Ohno first formulated his concept behind the Toyota Production System –
now evolved into Lean manufacturing – he was several decades ahead of his time.

As described in his 1988 book, “Toyota Production System: Beyond Large-Scale

Production,” his concept was based on a Pull approach to manufacturing, where processes
and actions are triggered by actual events in the real world – such as a machine failure or
the need for a part on the production line. This was opposed to the old way of production,
called Push, where processes are guided more rigidly by plans and schedules.

In theory, Mr. Ohno proposed 2 pillars that formed the foundation of TPS. These are JIT
(Just-In-Time) and autonomation (Jidoka). Both pillars are based on the concept of a Pull
signal triggering a business process based on actual, real-time information.

JIT requires production activities to be carried out at just the right time in order to minimize
any queuing of jobs or materials, which are considered waste. For example, the completion
of a product downstream automatically triggers the start of an upstream assembly
operation, so there is no unnecessary queuing of work-in-process materials.

Autonomation is about automating the business process of stopping machines and

correcting problems based on a real-time response to the unplanned event of machine
malfunction. This can prevent production of defective parts, eliminate overproduction and
avoid delays. Autonomation relieves the workers from the need to continuously judge
whether the operation of the machine is normal. The workers are then only engaged when
there is an alert for a problem and hence can simultaneously supervise several machines to
achieve better cost-effectiveness.

18 SPONSORED BY DASSAULT SYSTEMES

So why was Mr. Ohno ahead of his time?

Because the technology to fully enable his vision didn’t exist in 1988. Pull approach requires
the real-time flow of data among all the steps of manufacturing, so that processes and
timing can be tightly synchronized. Back then, with only mainframe batch-processing and
rudimentary event sensing available, Taiichi Ohno sought to implement his system without
the use of computers. And while he couldn’t fully realize his vision, he was able to succeed
sufficiently to revolutionize production at Toyota and at manufacturing facilities around the
world.

But that was then. Today, the necessary computer technology not only exists, but it is
increasingly being used by manufacturers and their suppliers to explore the usage of real-
time information in a complex production and supply chain. That means the full potential of
the “The Toyota-Style Information System,” as Ohno envisioned it, is finally beginning to be
realized today. And, it is making a very large impact on manufacturing enterprises.

This blog post was published on February 26, 2013.

You can read the original post here:
http://www.apriso.com/blog/2013/02/using-real-time-intelligencdata-to-enhance-lean-
manufacturing-2/

SPONSORED BY DASSAULT SYSTEMES 19

 THE INCREASING ROLE OF IT IN LEAN
MANUFACTURING
- BY GORDON BENZIE

When compared to the experience of my colleagues, my knowledge of continuous

improvement programs such as Lean and Six Sigma is nascent. But, over the past six years
that I have been working in the manufacturing industry, I have quickly learned about the
importance of reducing waste by operating Lean. Lean thinking is almost a religion, given
the focus, passion and intense conversations and philosophies that surround the topic. One
of the hot conversation items in the past had been the role that an IT system plays in Lean.
Some Lean proponents believe that there is no place for an IT system as it is adding work /
complexity / etc. to the process, thereby creating waste.

IDC Manufacturing Insights recently published a report on Manufacturing Operations

Technology that suggests otherwise. In the report there were some observations and
conclusions about Lean that I found very interesting. First, it really does pay to be Lean.
IDC Manufacturing Insights conducted research on 800 manufacturers that are part of an
index that they regularly cover. Lean companies really do achieve greater profitability than
“non-Lean” companies – on average they earn higher net profit margins that are nearly
two percentage points higher. So, if you are considering a Lean program of your own,
here is a good benchmark to include as part of your Return on Investment calculation.

After the financial crisis of 2008 and the natural disasters that hit Japan in 2011, companies

20 SPONSORED BY DASSAULT SYSTEMES

have taken a less aggressive stance on inventory levels. Supply chain disruptions can be
quite painful when operating with razor thin inventory levels, offsetting any possible
efficiency gains from Lean manufacturing if customer orders can’t be filled. Despite
operating with higher inventories today, Lean companies are still more profitable than
“non-Lean” companies. This is attributed to the lower overall operating costs that have
been achieved by taking a highly detailed, methodological examination of how all
business processes are executed. It turns out that having lower inventory levels is just
one component of Lean – the bigger picture is that performance improvement can come
from many areas of operations, such as productivity gains, a lower cost of quality and less
warranty and recall costs.
multiple locations across the enterprise. These types of improvements simply can’t be
realistically achieved without the benefit of an IT system to standardize the process and
accurately replicate.
In closing, it would appear that the verdict is now in – IT is a key component of Lean
programs, helping to further the spread of waste reduction and process variability to achieve
performance improvement. Anyone suggesting otherwise might want to take a moment to
consider reading the research that is now available validating this concept.

What was really interesting is the link that IDC was able to connect between how IT was
used to drive Lean practices. IDC gave some examples of how this was a reality:
This blog post was published on August 1, 2012.
You can read the original post here:
• IT integration (e.g. implementing a Manufacturing Execution System) that supports
http://www.apriso.com/blog/2012/08/the-increasing-role-of-it-in-lean-manufacturing/
process automation to avoid manual entries, overlapping requirements and achieving
a more paperless environment

• Centralizing master data management to reduce redundant and inconsistent data that
leads to inaccurate reporting and inefficient business processes

• IT enabled business process re-engineering projects for process analysis and optimization
to improve performance

I would add another IT-based enablement – the replication of process improvement to

SPONSORED BY DASSAULT SYSTEMES 21

TAKING LEAN TO THE SUPPLY CHAIN
- BY RICK GALLISA

Most large manufacturers today have established Lean or Six Sigma programs for their own
operations. It’s practically a requirement to be competitive.

But the line between a manufacturer’s “own” operations, and those of its partners, is
getting fuzzier all the time. With today’s increasingly connected supply chains, demand-
driven supply networks, and global operations, it only makes sense that big opportunities
for performance improvement and cost reduction might be out there in the supply chain,
just waiting to be discovered.

The benefits of a Lean supply chain might be a good thing – or might not, depending upon
your perspective. But is it realistic? Considering that Lean and Six Sigma programs are all
about consistency and control, and involve cultural and operational transformation, can a
manufacturer really expect to extend these practices outside of its own organization? And,
at what cost?

Pundit Perspective
A new report from Gartner, “Transform Your Supply Chain to Become Demand-Driven,”
cautions that creating a Lean supply chain is a journey, and won’t be easy. The authors
write, “Companies striving to become demand-driven must recognize that functional
integration is a prerequisite — and that it is extremely difficult to achieve. Fewer than 10%
of companies that have assessed their supply chain maturity, rate it as integrated.”

Nevertheless, Gartner recommends enterprises pursue the goal, and many are starting
to do just that.

22 SPONSORED BY DASSAULT SYSTEMES

Early Signs of Success Supporting and enabling all these efforts, of course, is ever-advancing technology
A recent article in Industry Week called “Lean into the Supply Chain” describes several that makes it possible for more and more people and operations to communicate and
examples of global manufacturers who have taken up the challenge, some with striking synchronize. As Paul Myerson, professor of supply chain management at Lehigh University,
success: says in the article, “technology not only enables lean but it can help identify and eliminate
waste by substituting information for inventory.”
• Pratt & Whitney, the aircraft engine manufacturer, aims to triple jet engine production
by 2020, with hundreds of suppliers. To keep control, the company has created an In other words, success with applying Lean manufacturing methodologies across
“Operations Command Center,” which gathers and shares information about the delivery a distributed global supply chain is heavily dependent upon visibility, control and
status of 400 suppliers worldwide, with early warnings if schedules might slip. synchronization of material flows such that as issues present themselves, they can be
quickly remedied to avoid potential for large disruptions.
• USG Corp., which produces and distributes gypsum wallboard, joint compound and
related construction products, has trained all 100 employees in its supply chain Based on the experience of these companies, it looks like information is a lot cheaper to
organization in Lean and Six Sigma; the company saved almost $10 million last store and manage than inventory. And, it certainly can be transported far more easily!
year while improving operational efficiencies. Says a spokesman, “If we have a warehouse
in one region with stock-out problems, we’ll involve production, transportation, logistics, What do you think? Is your enterprise ready to “Lean into the supply chain”?
etc., to solve that problem. We’ll use enterprise value stream mapping from several
locations throughout the entire process.”

• MTU America, a Rolls-Royce Power Systems and Daimler subsidiary, created a 400,000
This blog post was published on December 16, 2014.
square-foot aftermarket logistics center. They report “huge gains” in on-time delivery
You can read the original post here:
and productivity, but say “the biggest accomplishment has been improved customer http://www.apriso.com/blog/2014/12/taking-lean-to-the-supply-chain/
satisfaction.”

• Even healthcare, an industry that traditionally has lagged behind in this kind of
technology, is “leaning” its supply chain. Intermountain, a non-profit healthcare system
of more than 20 hospitals in the southwest United States, opened a 327,000 square-foot
Supply Chain Center equipped with the “latest warehousing technology, such as a new
warehouse management system, a cubing and dimensioning system, and an automated
conveyor system.” They hoped to save $80 million in five years. Instead, they did
it in two!

SPONSORED BY DASSAULT SYSTEMES 23

 TAKING A LEAN APPROACH TO QUALITY
- BY MILOSZ MAJTA

We live in a world where every manufacturing process is under intense scrutiny, with
objectives ranging from improving efficiency, cutting waste or reducing costs. By now, most
of the “low hanging fruit” has been picked. That means it is getting more and more difficult
to continue the quest for continued process improvement. New processes might now
require new and different approaches to how you do business.

Have you considered a world where your raw materials or Work In Process (WIP) is received
with perfect quality – for every shipment from your suppliers? What if your quality
tests were already performed and passed for all of the materials you received from your
suppliers?

This concept may not be as far-fetched as you might think.

To start, you need to have suppliers that are willing to work with you to establish a
“collaboration interface” that connects your production processes to theirs. Times of
economic uncertainty and challenges present opportunistic windows to negotiate new
terms and conditions as a way to ensure future orders …

Instead of doing an inspection at the receiving dock when the goods come from your
supplier, what if the delivery was accompanied by the inspection results of key tests that
has already been performed, having been agreed upon between manufacturers and their
suppliers. Implementing this vision could significantly reduce the time, resources and costs
associated with ensuring your quality standards are strictly adhered to.

24 SPONSORED BY DASSAULT SYSTEMES

This process improvement could literally redefine how your production processes are
executed, as the raw materials could be scheduled to arrive as they are used, in exactly the
right quantity and with exactly the right quality. Production delays could be significantly
reduced, and idle inventory could be reduced, helping to support your Lean manufacturing
initiatives. In fact, your delivery schedules could be better synchronized with increased
visibility to your supplier’s operations, helping to improve efficiency by receiving supplies
not only just in time, but also in sequence, if applicable, even if a supplier disruption
occurred from one of your key partners.

The above concept can be implemented with a modern manufacturing execution system
capable of extending visibility into your product supply network. Suppliers submit their
quality control data (i.e. the results from the tests performed, etc.) directly into your system
– electronically – becoming part of your As-built records, suitable for tracking, tracing and
genealogy requirements, including root cause analysis.

Having all this data in your system lets you combine it with your other manufacturing
data, simplifying the calculation of the cost of poor quality (COPQ) due to line stoppages,
scrap/rework processing, warranty issues or recall costs resulting from supplier quality
issues. Further, this intelligence creates a basis for corrective actions with suppliers, helping
This blog post was published on September 20, 2011.
manufacturers to further engage suppliers in the quality improvement processes where real
You can read the original post here:
“ownership” can be established, managed and maintained. Just imagine a world where such
http://www.apriso.com/blog/2011/09/taking-a-lean-approach-to-quality/
strict quality controls could be implemented and managed before a part even entered your
warehouse!

SPONSORED BY DASSAULT SYSTEMES 25

 THREE WAYS TO IMPROVE QUALITY
WITH LEAN MANUFACTURING
- BY MILOSZ MAJTA

I have been involved in at least two major projects in the past year that involved combining
a Lean program with quality process improvements, which got me thinking about the
combination of the two.

In one case, we’re performing quality as an in-line process – instead of an external process
performed in ERP, which held the master data for quality inspections. This process
improvement has eliminated delays caused by constant exchanges between ERP and shop
floor operations. Inspection results are obtained in real-time and thus immediately available
for final usage decisions, reducing overall process lead time. Material throughput has
accelerated along the production line for a faster, cleaner workflow.

There’s a lot of talk and thinking about Lean squeezing out every last penny from the
manufacturing floor – down to turning off lights or reducing an arm’s movement by a single
second – I approve of that message.

But in the meantime, being Lean with your quality process can sometimes seem like a
forgotten dark corner. How many manufacturers are installing halogen bulbs and making
sure unused lights are turned off, when their quality process is comparatively chaotic?
Perhaps this oversight is happening because Lean initiatives in quality are not entirely
intuitive. Nobody realizes there is potential because they can’t imagine it any other way.

26 SPONSORED BY DASSAULT SYSTEMES

So, I will try and do my part to help raise awareness of this opportunity for reducing waste
(or “muda”) from your manufacturing operations. Here are three tips, based on what I am
seeing some of Apriso’s customers do in their efforts to apply Lean to quality:

1. Perform your quality inspections as close to the shop floor as possible.

This means embedding your quality process within production, warehouse, receiving and
other operations; this approach requires real-time visibility and control over your material
flows and processes, and most likely, just-on-time deliveries to perform these processes
efficiently.

2. Inspect early in the process.

One of the highest costs of quality is a defective part or material that forces you to discard
an entire batch; the farther along in the process, the more pain and cost involved. So, you
need to inspect with intelligence, using flexible sampling rules and inspection plans that can
be adjusted to the specifics of the product, production line, manufacturing process, etc.

3. Implement and enforce the use of best practices.

What I mean here is to start thinking seriously about how you can replicate your quality
processes across not only the production line at one plant, but across all facilities; as
new best practices are identified and validated, get them in place everywhere. A Center
This blog post was published on March 10, 2011.
of Excellence (or COE) is a great way to accomplish this task. Shared and enforced global
You can read the original post here:
inspection plans and processes are a great way to make the most efficient processes the http://www.apriso.com/blog/2011/03/three-ways-to-improve-quality-with-lean-manufacturing/
standard for the company, thereby further amplifying the benefits of your Lean program.

SPONSORED BY DASSAULT SYSTEMES 27

 A LEAN APPROACH
TO MANAGEMENT
- BY TUAN NGUYEN

Manufacturing enterprises have invested heavily in Lean practices for many years, wringing
the inefficiencies out of every operation in the production process. Supply chains have been
tightened, inventories reduced or virtually eliminated with just-in-time processing, and
production operations at every stage streamlined and optimized.

But there is one area in the Lean revolution that often is not considered—not because it
doesn’t matter, but because it has been so difficult to deliver a solution. That neglected
area? The management decision-making process.

Consider a global manufacturer that has practiced continuous improvement for a decade.
Products roll off the assembly line with precision. The Quality team is on top of production
worldwide, so yields are consistently high. Warehouses operate at top efficiency. And then
one day, a supplier problem develops. A key component, let’s say, begins trending out of
spec.

Leverage manufacturing What does the company do? That depends on the managers who have responsibility. How
quickly can they identify the problem? What actions do they take? How soon can they
intelligence to gain insights correct the problem, and how accurately?
on how to improve the
management process.

28 SPONSORED BY DASSAULT SYSTEMES

Applying a Lean Approach to Management
All of these things depend on information getting to that decision-maker in a timely way.
And this is where Lean systems can fall down. Global manufacturers have complex supply
chains and multiple plants that often capture data in different ways and report in different
formats. That data has to be gathered, transformed, cleaned, stored and analyzed, and then
delivered to each person in the enterprise who needs it, in a form appropriate for their role.
The plant manager may spot a problem quickly, based on local data. But what if it’s a
regional problem that is only apparent when looking at aggregated data? Then it will
take longer, perhaps a good deal longer. There are companies that are happy if they get
aggregated global manufacturing reports on a weekly basis. But a lot can happen in a
week. Faulty products can ship. Quality can get bogged down with testing. Warehouses can
accumulate parts waiting for a management decision.
Such a system is not trivial to implement, and IT may grumble about yet another
information project that will stretch its already thin resources. But there are solutions on
the market that are relatively easy to deploy, and the investment is small compared to the
efforts already expended on global Lean initiatives.
Besides, without a manufacturing intelligence system, Lean organizations are only Lean
when nothing unexpected happens. And, as every manufacturing enterprise knows, that is
almost never the case! One unexpected event can undo months of savings and efficiencies.
This blog post was published on July 29, 2014.
You can read the original post here:
http://www.apriso.com/blog/2014/07/a-lean-approach-to-management/

A New Use Case for Enterprise Manufacturing Intelligence

This is why some enterprises are now implementing a new generation of manufacturing
intelligence systems that provide global management reporting and analysis in close to
real-time. This approach requires more than a graphical front-end that simply “dresses up”
disparate or incomplete data. It requires real-time information gathering from all the plant
floors, the ability to clean and aggregate the data from multiple sources, and the means to
deliver that data up the corporate chain “as it happens”—all the way to the corner office if
needed.

SPONSORED BY DASSAULT SYSTEMES 29

 LEAN MANAGEMENT PART 2:
CONTINUOUS IMPROVEMENT
- BY TUAN NGUYEN
gement Pro
na ce
a s Visibility into real-time manufacturing intelligence can let management improve and
M

enhance Lean programs. This improvement can be accomplished with access to real-time

s
production information, ideally aggregated from across the enterprise. Better, faster access
to information allows management to act with greater efficiency, which contributes to

Act Plan improved Lean performance.

But what if we took the idea even further? What if manufacturers could continuously
improve the management process itself, in the same way that they continuously improve a
Check Do production process?
Co

After all, they are both processes. When something happens in the enterprise that requires
t
judgment and decisions, such as a quality crisis or a market shift, a management process is
en

in
nt

uo em
initiated. Management receives information (or doesn’t), investigates the situation (or not),

us Im prov
and takes action (or fails to). Furthermore, there are meaningful metrics involved, such as
time to discovery, time to resolution, outcome of resolution, and profit/loss impact.

30 SPONSORED BY DASSAULT SYSTEMES

Looking at Management as a Process
If management decisions affect Lean performance, and if there are metrics that can be
tracked, compared, and improved upon, then in theory, couldn’t we use this information to
continuously improve the actual management processes? I think the answer is yes.
When a manufactured part begins to trend out of performance, you know this because you
are tracking all such parts being produced globally. If one part from one plant is out of spec,
you take action. Perhaps you find the plant is not following best practices, so you take steps
to correct the problem and deploy the proper processes.
The same approach can apply to management decision-making. If an enterprise tracked
how managers performed in these situations, I’ll wager there would be significant
differences discovered. Some management teams would accomplish more with fewer
resources. Some would resolve problems faster. Some would deploy new processes more
effectively than others. These differences could be tracked by an information system—let’s
call it a Management Intelligence System.
Management Intelligence System
Suppose, for example, that a particular Lean production initiative was being deployed
globally. If we had a Management Intelligence System, we could track and compare how
different regions deployed the initiative at the management level. We might find that one
region was far ahead of the others in certain key metrics. For instance, we might find that
the successful management team accomplished more with fewer resources, but had more
regular inter-departmental meetings to facilitate problem-solving.
We could then identify and deploy these management best practices around the enterprise,
just as we deploy best production practices.
Is this Concept Possible, or Just Fantasy?
Well, in theory, this type of system could be created using the manufacturing intelligence
technologies available today. It would simply require the creation of a new set of metrics—
time spent, resources used, departments contacted, etc. This data could be captured by the
same system that managers use to investigate production issues, through their computers
and mobile devices.
The data is probably there; it’s simply a matter of figuring out how to access and use it.
Let me be clear—I’m not proposing that “big brother” automate the management process.
That would be small minded and doomed to failure. Management, by definition, involves
human judgment and will never be as cut-and-dried as a production process. But certain
elements of management could be measured and improved. What about “Mean time to
Resolution?” And if used judiciously and fairly, a Management Intelligence System could
yield significant information about how management is performing, and more importantly,
where it could be improved.
In other words: Lean management based on continuous improvement.
This blog post was published on July 31, 2014.
You can read the original post here:
http://www.apriso.com/blog/2014/07/lean-management-continuous-improvement/
SPONSORED BY DASSAULT SYSTEMES 31
 GOLF LESSONS FROM LEAN,
SIX SIGMA AND TOC
- BY JAMES MOK

After taking golf lessons from several coaches, I noticed some very fundamental differences
between their approaches. My current coach is very good at giving a single point of advice
based on my current swing. Although one day I would like to swing like Ernie Els, right now
I have settled on my ugly swing, but I am experiencing notable score improvement after
every lesson.

My experience has been quite different from the lessons that my friend took. His coach
basically asked him to forget all he had learned and tried to revolutionize his swing in order
to take him to the next level. Now he is scared to go to the course because he is stuck with
a setback before he can get any better. However, he does believe that he is taking the
necessary steps towards his goal of turning professional someday.

It occurred to me that continuous improvement methodologies could be applied to golf in

my search for an ever improving handicap. And, like golf, the choice on what approach is
best for you is tied to your long and short term goals. Do you want to work on a specific
part of your game, say your grip illustrated with (a) below, or your backswing (b) or your
stance (c)?

32 SPONSORED BY DASSAULT SYSTEMES

Lean:
If you think Lean is your best approach, then you should focus on eliminating muda in your
swing. Do not try to “push” the club head towards the ball but rather let a synchronized
body turn to naturally “pull” the club head in order to achieve a smooth flow of your swing.
The game of golf is a process of relentless continuous improvement. We do not generally
recommend you to invest too much energy to your tools because dependence on such
frequently undermines the development of the correct mindset. If you focus on improving
every little piece, your efforts will eventually show up in your score and hence your
handicap, which should not be your ends but means to the way of golf.
Six Sigma:
Alternatively, if you think consistency is your best path to improvement, then you should
embrace a Six Sigma approach. Focus on reducing variability of your swing. Establish a set
of statistical tools to measure the defects of your swing as well as scientific instruments to
monitor and track your progress. You need to certify your skills from green to black belts.
Through leveraging the right tools with scientific measurement and objective feedback, you
will ultimately reduce your swing variability with a Six Sigma approach.
TOC (Theory of Constraints):
If you think that you need a whole new approach on how you learn, then perhaps applying
the Theory of Constraints is your best angle. You can maximize the return on your practice
time by focusing on identifying and improving the bottleneck of your game. At every stage
of your skill development, there is a constraint that determines the throughput of your
entire game. At one point it may be the grip or the address or the swing plane or approach
shot or putt … but the point is that the bottleneck moves. By identifying the bottleneck and
concentrating on it, you will be able to get a notable handicap reduction within the shortest
time. While Lean and Six Sigma can get you closer to the “perfect” swing, TOC is taking a
holistic look at your game and hence focusing on improving the one point that can quickly
improve your score.
Whatever the approach you pick to improve your golf game or to help transform your
manufacturing operations, you can benefit from applying technology that automatically
records your current swing (or process) to then give you instant feedback on what to
improve. In my opinion, there is no better example than golf to illustrate how your actual
execution can be deceptive to the best intended plan.
This blog post was published on November 17, 2010.
You can read the original post here:
http://www.apriso.com/blog/2010/11/golf-lessons-from-lean-six-sigma-and-toc/
SPONSORED BY DASSAULT SYSTEMES 33
 LEAN MANUFACTURING AND
THE WORLD OF WARCRAFT
- BY JAMES MOK

Any seasoned Lean manufacturing expert will tell you that implementing Lean is not
just about JIT, Heijunka or any sort of tools. It is about implementing a Lean culture of
continuous process improvement. Toyota considers their ultimate competitive advantage
to be the “intoxication of improvement” by every employee, from the shop floor to the
top floor. Thousands of improvement ideas are created every day, even for the smallest,
mundane tasks. This strategy is in stark contrast to the “don’t fix what isn’t broken”
mindset that prevails in many other organizations.

What Toyota believes is one thing. But, can this approach be scientifically validated? Can we
simulate this kind of organizational behavior and measure its output? And if we can, what
can we learn about managing thousands of new ideas, and then distilling them into action
every day?

John Seely Brown: The Knowledge Economy of World of Warcraft

http://youtu.be/RZG6WTRP-6E

In this video, Dr. John Seely Brown, one of my favorite business writers, talks about idea
innovation dynamics that are taken to a whole new level within the game of World of
Warcraft (WoW), which happens to be my favorite on-line video game. At the end, Brown
states “This may be the first time that we are able to prove exponential learning … and
figure out how to radically accelerate what you’re learning.” Indeed, I have found this game
could interestingly cast a new light on the social dynamics of Lean culture and how it might
evolve in the future.

34 SPONSORED BY DASSAULT SYSTEMES

Guild Structure and Quality Circles
The WoW now has about 12 million players worldwide. It is not unusual to find 12,000 new
ideas that were generated in a single night … a good night might yield 20,000 or more. As
Brown explains, “The only way to get anything done seriously is to join a Guild … there is so
much knowledge being produced every single day that without the Guild structure to help
process this kind of knowledge, you would simply be overwhelmed.” A Guild in the WoW is
a group of 20-200 people that work together to help process ideas. This structure greatly
resembles the Quality Circle (QC) movement where employees form small groups that
constantly seek ways to self-improve.
Everything is Measured; Everyone is Critiqued
In the WoW, it is easy to record every action and measure performance. There are after-
action reviews on every high-end raid where everyone is critiqued by their peers. This
resembles the typical PDCA (Plan-Do-Check-Act) process used in QC. The challenge,
however, is that in the manufacturing world there is still too much information recorded on
paper. Or, if recorded electronically, on multiple, segregated systems. This has inhibited the
sharing, retrieval and analysis of prior activities. In the same way, in the WoW you need to
craft your own dashboard to measure your own performance. Within such a highly dynamic
environment, static KPIs that were identified as once being important quickly become
obsolete. The future of performance measurement technology appears to be going in the
direction of more detail, delivered in real-time and with a high degree of personalization.
Exponential Learning
In order to proceed to new levels in WoW, learning speed must increase exponentially,
which includes the sharing of best practices from one Guild to another. One might argue
that manufacturers are no different – best-practices need to be shared across and within the
organization. Effective Continuous Improvement could lead to a state of exponential learning
that constitutes the ultimate competitive advantage. In a sense, the computer world of
WoW is able to simulate the social dynamics of how to accelerate learning and Continuous
Improvement. The future evolution of Lean culture might learn from what innovations are
regularly occurring within the present World of Warcraft.
What do you think? Are there any other WoW gamers that feel the same way, also working
in the world of manufacturing?
This blog post was published on October 21, 2011.
You can read the original post here:
http://www.apriso.com/blog/2011/10/lean-manufacturing-and-the-world-of-warcraft/
SPONSORED BY DASSAULT SYSTEMES 35
THE AUTHORS
Fred Thomas is an industry director for discrete manufacturing. Fred covers aerospace &
defense, automotive and industrial machinery & equipment. Likes include big metal objects,
engines and horsepower, especially when there are four wheels involved. Dislikes: recalls
and people who doubt the US can compete globally.
Tom Bonine is president of National Metal Fabricators. The Chicago area firm, established
in 1944, offers custom fabrication, angle rings, welding, and bar milling services.
Jordan Berkley is our green manufacturing expert. Despite his love of the environment,
you won’t find him wearing tie-die and singing kumbaya. He likes green cash, and thinks
that pollution is just too expensive for any of our pocketbooks. You’ll also see posts from
Jordan on Cleantech topics, such as battery, solar or wind manufacturing. Peace out.
36 SPONSORED BY DASSAULT SYSTEMES
Scott Johnson is vice president of Supply Chain and Inventory Management at The
Coghlin Companies Inc., a privately held company specializing in helping manufacturers cost
effectively improve their time-to-market.
James Mok is a strategist, evangelist, consultant, project manager and implementer.
He has experience with enterprise software in manufacturing in automotive, high-tech,
electronics, industrial, consumer goods and healthcare sectors. Around here we just call him
“the Lean guy.” James also has a personal blog at http://jmok007.wordpress.com/.
Gordon Benzie is our resident blog-master, responsible for keeping the Manufacturing
Transformation blog content fresh and interesting. While he isn’t doing that, he is managing
Apriso’s public and analyst relations as part of his marketing communications role at Apriso.
His posts will likely be commentary and observations on recent analyst reports and research
studies. Gordon can be found on LinkedIn and Google+.
Rick Gallisa is focused on just about anything you’ll find in the grocery store and consume
quickly, from pharmaceuticals to toilet paper. If it’s a product that belongs on a store shelf,
chances are Rick works with the companies that make it.

Milosz Majta has been with Apriso for over a decade, starting first in a Professional
Services capability for five years, transitioning to product manager for Quality &
Maintenance applications within the FlexNet suite. With a strong applications background,
he is passionate about addressing customer pain points surrounding manufacturing
operations.

Tuan Nguyen manages Apriso’s manufacturing intelligence products. And, with a Ph.D.
in Business Administration with a focus in Operations Research, he has a quite a bit of
intelligence too.

SPONSORED BY DASSAULT SYSTEMES 37

 or registered trademarks of Dassault Systèmes or its subsidiaries in the U.S. and/or other countries. All other trademarks are owned by their respective owners. Use of any Dassault Systèmes or its subsidiaries trademarks is subject to their express written approval.
©2014 Dassault Systèmes. All rights reserved. 3DEXPERIENCE®, the Compass icon and the 3DS logo, CATIA, SOLIDWORKS, ENOVIA, DELMIA, SIMULIA, GEOVIA, EXALEAD, 3D VIA, BIOVIA, NETVIBES, and 3DXCITE are commercial trademarks
Our 3DEXPERIENCE® platform powers our brand applications, serving 12 industries,
and provides a rich portfolio of industry solution experiences.
Dassault Systèmes, the 3DEXPERIENCE® Company, provides business and people with virtual universes to imagine sustainable
innovations. Its world-leading solutions transform the way products are designed, produced, and supported. Dassault Systèmes’
collaborative solutions foster social innovation, expanding possibilities for the virtual world to improve the real world. The group brings
value to over 170,000 customers of all sizes in all industries in more than 140 countries. For more information, visit www.3ds.com.

Europe/Middle East/Africa Asia-Pacific Americas

Dassault Systèmes Dassault Systèmes K.K. Dassault Systèmes
10, rue Marcel Dassault ThinkPark Tower 175 Wyman Street
CS 40501 2-1-1 Osaki, Shinagawa-ku, Waltham, Massachusetts
78946 Vélizy-Villacoublay Cedex Tokyo 141-6020 02451-1223
France Japan USA